Lululemon: Valuation Is Still a Stretch

By

Paul Price

| Dec 13, 2013 | 9:30 AM EST

Valuation always matters. Cult stocks can have huge run-ups but always regress eventually back to levels that are supported by fundamentals. Yoga wear specialist Lululemon (LULU) beat October quarter estimates by three cents but guided downward for fourth quarter by about seven cents.

The shares were crushed, dropping almost 11.7% to $60.48. Full year 2013 results should now be around $1.94 per share meaning Lululemon still commands a 31.2 times multiple after growing EPS just 0.5%....200 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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